Anglo Asian Mining PLC Final Results 2025: Building a Mid-Tier Copper and Gold Producer

Anglo Asian Mining ended 2025 in a markedly stronger position than a year earlier. The company returned to profitability, brought two new mines into production, increased revenue to nearly $123 million, and reinstated its dividend. More importantly, it set out a clearer picture of what it wants to become over the next five years: a mid-tier, multi-asset copper and gold producer with a production target of around 50,000 tonnes of copper per annum.

That ambition rests on three pillars. First, expand production from existing assets. Second, advance a pipeline of development projects led by the Kharkhar and Garadag copper projects. Third, maintain a longer-term exploration engine across its Azerbaijan licence areas. The result is a business that is no longer defined solely by its flagship Gedabek operation, but by a broader portfolio with copper taking centre stage.

Table of Contents

• A milestone year driven by new production
• The strategic shift: from single-asset heritage to multi-asset copper growth
• Azerbaijan as the operating base
• Gedabek remains the operational backbone
• Gilar: a strategic underground addition
• Demirli: transforming the copper profile
• Kharkhar and Garadag: the next major step
• Financial performance: a genuine turnaround
• Exploration remains material, but communication will matter
• Operational questions investors should keep asking
• The investment case after 2025
• FAQ

A milestone year driven by new production

For 2025, Anglo Asian reported production of more than 25,000 ounces of gold and nearly 8,000 tonnes of copper. That output did not come from a full year of contribution across all key mines. Gilar operated for eight months and Demirli for only five months during the year, making the production base materially stronger entering 2026 than the headline 2025 figures alone might suggest.

The financial impact was significant:

• Revenue: nearly $123 million
• Profit before tax: nearly $26 million
• Year-end net cash: $2.6 million
• Proposed dividend: 4 US cents per share

The dividend is expected to be paid in August rather than July, while the company completes the legal work required to ensure full compliance with the Companies Act. Management also indicated that a formal dividend policy remains under active consideration.

Operationally, the company is guiding for a substantial step-up in 2026, with copper production of 20,000 to 25,000 tonnes and gold production of 28,000 to 33,000 ounces, alongside silver output approaching 200,000 ounces. Management emphasised that first-quarter production was in line with internal plans, even if a simple annualised extrapolation might suggest otherwise, because both Gilar and Demirli were still moving through planned development phases.

The strategic shift: from single-asset heritage to multi-asset copper growth

Anglo Asian’s strategy is increasingly straightforward. Use its existing operating base in Azerbaijan to bring new mines online sequentially, build scale in copper, and maintain exposure to gold as a valuable earnings underpin.

The near and medium-term growth path is centred on four producing or near-producing hubs:

• Gedabek, the long-standing flagship mine and processing centre
• Gilar, the underground copper-gold mine near Gedabek
• Demirli, the larger copper project in western Azerbaijan
• Kharkhar and Garadag, the future large-scale copper developments

Management’s long-term case is that this sequence creates a platform for a meaningful re-rating. Anglo Asian already operates under a production sharing agreement in Azerbaijan, which management regards as a key competitive advantage because it offers a stable fiscal and operating framework. For a mining business committing capital over long time horizons, predictability in taxation, permitting and contractual rights matters almost as much as geology.

Azerbaijan as the operating base

The company’s operations and exploration licences span around 2,500 square kilometres across eight contract areas in Azerbaijan. These are grouped into three clusters:

• Northwest: Gedabek, Garadag and Gosha
• Central west: Demirli and Gyzylbulag
• South: Ordubad and Vejnali

Current production is concentrated in the Gedabek and Demirli contract areas, while Kharkhar and Garadag are being prepared as the next major development phase. The remaining areas continue to serve as exploration ground.

For investors, the central point is that Anglo Asian is not attempting to build a new operating jurisdiction from scratch. It has an established local presence, government relationships, infrastructure experience, and a workforce that now exceeds 2,600 employees and contractors.

Gedabek remains the operational backbone

Gedabek has been the company’s flagship operation for years and still provides the core processing and operational infrastructure underpinning newer mines. It hosts not only the Gedabek mine itself but also the nearby Gilar deposit and the Zafar copper-gold-zinc project.

One of the most important developments at Gedabek has been the completion of flotation plant upgrades. These upgrades increase processing capacity and flexibility, particularly for higher-grade copper material from Gilar. Additional equipment such as filter presses has also been added.

On the environmental and operational side, Anglo Asian is also progressing tailings infrastructure. The final embankment wall raise at the current tailings facility is being completed during 2026, in line with the Global Industry Standard on Tailings Management. A second tailings dam has already been designed and is awaiting government approval.

This matters because sustained production growth depends not only on ore supply but on processing and waste-management capacity. In practice, tailings approvals and plant upgrades can be as decisive for mine expansion as the resource base itself.

Gilar: a strategic underground addition

Gilar is one of the key reasons Anglo Asian’s production profile has changed. Located close to Gedabek’s existing plant, it benefits from shared infrastructure and avoided the capital burden of constructing a new standalone processing facility.

The mine is currently delivering around 2,000 tonnes per day and contains a JORC-classified mineral resource with approximately:

• 54,000 tonnes of copper
• More than 250,000 ounces of gold

The current mining focus is on Zone 4, where grades are especially attractive at roughly 1.5 per cent copper and 1.8 grams per tonne gold. Management noted that underground development has advanced to the point where around half a million tonnes are already positioned for mining.

The project also retains exploration upside. An exploration tunnel is due to be completed around the middle of 2026 to facilitate underground drilling aimed at testing deeper extensions of Zone 4 and upper continuations of Zones 1 and 2.

Gilar is therefore more than an incremental ore source. It is a proof point that Anglo Asian can build and operate underground mines in Azerbaijan, an expertise management highlighted as a meaningful in-house capability.

Demirli: transforming the copper profile

If Gilar broadened the portfolio, Demirli has the potential to reshape it. Located in the Agdera region, Demirli is a large copper project with an existing open pit mine, flotation plant rated at six million tonnes per annum, a mining fleet and a tailings facility.

Before production could commence, substantial work was required. Anglo Asian had to restore and reconnect site infrastructure, including power and water supplies, upgrade process control systems, establish laboratories and metallurgical test facilities, and create the offices and accommodation needed to support operations.

The company also undertook a 9,000 metre reverse circulation drilling programme to define starter ore, identifying around 5.5 million tonnes at approximately 0.5 per cent copper. Mining contractors are in place, while internal teams now oversee mine planning, engineering, surveying and geology.

By the time of the results presentation, the plant had been fully commissioned and was running at full capacity following repair of a mill spindle issue. Management also noted that recent mining performance had reached record rock movement rates for the operation, including waste pushback and delivery to the plant.

Demirli is central to Anglo Asian’s near-term copper growth. It is also a project with district-scale exploration potential, both as an extension of the mine itself and across the linked Demirli and Gyzylbulag contract areas.

Kharkhar and Garadag: the next major step

The future growth story is dominated by two projects near Gedabek: Kharkhar and Garadag.

Kharkhar

Kharkhar is a high-quality copper resource located roughly 10 to 15 kilometres from Gedabek. It appears well suited to open-pit development and benefits from access to shared infrastructure, administration and staffing already established in the region.

A 2024 JORC mineral resource estimate outlined nearly 120,000 tonnes of copper metal. Importantly, the deposit remains open at depth and along strike, with drilling below studied pit shells indicating further mineralisation. In other words, the current resource may not represent the full scale of the opportunity.

Garadag

Garadag is on a different scale altogether. The maiden resource contains more than 900,000 tonnes of copper metal. Combined with Kharkhar, the two projects host over one million tonnes of copper in the ground.

Because of their close proximity, management expects substantial sharing of future infrastructure, including processing facilities, water and power. That should reduce capital intensity, particularly for Garadag, which could leverage investment made initially for Kharkhar.

Feasibility studies for both projects are now close to contract award, with completion targeted in the second half of 2027. Those studies will examine development trade-offs, including open pit, underground and combined mining scenarios.

Anglo Asian also sees a strategic opportunity beyond concentrate production. The company is evaluating a pathway to produce copper cathode, which would make it a copper metal producer for the first time and represent a significant step for Azerbaijan’s mining sector as well.

Financial performance: a genuine turnaround

The headline financial message from 2025 was simple: Anglo Asian moved from a difficult prior year to a profitable and cash-generative one.

There are, however, several details worth noting.

Revenue and concentrate sales

Included in revenue was $8.6 million from a Demirli copper concentrate sale where the buyer, Trafigura, purchased and paid for the material before year end even though it remained on Anglo Asian’s premises. Management described this as a new type of transaction for the company.

Government production share

All sales remained subject to the minimum 12.75 per cent government production share. Historically, this minimum has applied because unrecovered costs had been carried forward across the company’s contract areas. That is changing. Management expects Demirli to remain at the minimum, but Gedabek’s production share could rise to around 18 per cent by the end of 2026 as those unrecovered costs are extinguished.

Impairment and tax

The company impaired $3.6 million of development assets, mainly related to Ordubad and Gosha, reflecting its current prioritisation of Gedabek, Demirli, Kharkhar and Garadag. Taxation included a deferred tax charge, but management also noted that local tax losses have now been used up, meaning cash tax payments are likely to resume going forward.

Balance sheet and lease accounting

A major balance sheet change was the recognition of the Demirli lease under IFRS lease accounting. This brought a substantial lease liability onto the balance sheet and a corresponding right-of-use asset. Management stressed that future lease payments will not appear simply as lease costs in the profit and loss account. Instead, they will be recognised through depreciation of the asset and interest on the lease liability.

Borrowings stood at $27.6 million year-end, with most due in 2026. As no additional borrowing is currently planned this year, Anglo Asian indicated it expects to be almost debt-free by the end of 2026.

Cash flow

Operating cash inflow before working capital reached $67 million. Working capital absorbed $20.2 million, mainly due to higher inventories associated with expanding operations, including stockpiles at Gilar and Demirli and copper concentrate inventory.

Total capital investment was $30 million, including:

• $11 million on Demirli development
• $6.7 million at Gedabek on Gilar development and the tailings dam wall raise

Year-end cash stood at $21.2 million, including $9 million of restricted cash, leaving net cash of $2.6 million. Since year end, cash generation has improved significantly, with management reporting cash had risen to $17.7 million from the net position recorded at December.

Exploration remains material, but communication will matter

One of the more interesting points raised was whether Anglo Asian has underplayed the market value of its exploration programme. Management acknowledged that the company generates extensive geological information and indicated that exploration reporting would be strengthened going forward.

The scale of planned work is certainly notable. Across development, resource definition and project support, the company is planning around 90 kilometres of drilling. It also intends to update mineral resource estimates across several assets during 2026, including Gedabek open pit, Zafar, Gilar and Demirli, using current metal prices as the basis for revised models.

In the Garadag copper belt, which spans around 10 kilometres, Anglo Asian sees numerous copper targets supported by geochemistry and surface sampling. Historical airborne electromagnetic work in the wider area has identified multiple porphyry targets and many shallower mineralisation targets.

For investors, the opportunity is clear. Better communication of exploration milestones, resource updates and drill results could help the market better appreciate the depth of the pipeline rather than viewing Anglo Asian only through current production.

Operational questions investors should keep asking

The 2025 results strengthened Anglo Asian’s investment case, but a few issues remain worth monitoring closely:

• How quickly can Kharkhar and Garadag move through feasibility and permitting? These projects are essential to the five-year copper growth plan.
• What capital structure will be used for development? Management cited internal cash flow, bank debt, vendor finance and offtake-linked funding as options, but the eventual mix will shape risk and returns.
• How much will the rising government production share affect margins at Gedabek? This is a foreseeable headwind that investors should factor into forward economics.
• Can Anglo Asian sustain cost discipline as the business scales? A low-cost operating profile has been a hallmark of the company and will be increasingly important as capital requirements rise.
• Will management provide more regular and detailed exploration disclosure? If the company wants a fuller market valuation for its pipeline, clearer technical communication could become a valuable catalyst.

The investment case after 2025

Anglo Asian is no longer simply a small gold-linked operator with copper by-product exposure. It is becoming a more diversified mining company with an increasingly copper-led identity, backed by gold production, existing infrastructure and a meaningful project pipeline.

Its core strengths are evident:

• A proven operating history in Azerbaijan
• Multiple producing and development assets
• More than one million tonnes of copper and over 400,000 ounces of gold in the ground across key projects highlighted by management
• A return to profitability and cash generation
• A reinstated dividend
• A pathway to larger-scale copper production over the medium term

The next phase will depend on execution. Demirli must continue to ramp smoothly. Gilar needs to deliver its underground potential. Kharkhar and Garadag must advance through study work and into development. If those milestones are achieved, Anglo Asian’s target of becoming a mid-tier copper and gold producer looks increasingly credible rather than aspirational.

For those seeking ongoing updates, the company provides registration for future presentations through its investor registration page.

FAQ

What were Anglo Asian Mining’s key 2025 financial results?

Anglo Asian reported nearly $123 million in revenue, almost $26 million in profit before tax, and year-end net cash of $2.6 million. The board also discussed reinstating the dividend at 4 US cents per share.

What is Anglo Asian’s production guidance for 2026?

The company is guiding for 20,000 to 25,000 tonnes of copper, 28,000 to 33,000 ounces of gold, and close to 200,000 ounces of silver, at competitive all-in sustaining costs.

Why are Gilar and Demirli so important?

These two mines were brought into production during 2025 and are central to Anglo Asian’s shift towards becoming a multi-asset producer. Gilar adds higher-grade underground copper-gold ore near existing Gedabek infrastructure, while Demirli materially expands copper production capacity.

What are the main future growth projects?

The main development projects are Kharkhar and Garadag, both located near Gedabek. Together they host more than one million tonnes of copper and are expected to underpin the company’s medium-term expansion strategy.

How does Anglo Asian plan to finance new mines?

Management said it is considering a range of funding options, including internally generated cash flow, local or international bank debt, vendor financing, and funding support linked to future copper concentrate or copper metal offtake.

Is Anglo Asian still focused on gold as well as copper?

Yes. Although copper is becoming the dominant growth theme, management made clear that precious metals remain important to the business and that the company wants to keep its copper growth strategy underpinned by gold assets.